For individuals looking to plan for retirement, there are a variety of options. Annuities are one of them. An annuity is an insurance product that pays out regular income. It is often used as part of a retirement portfolio.
What is Annuity?
An annuity is a contract aimed at generating steady income during retirement, where in lump sum payment is made by an individual to obtain certain amounts immediately or at some point of future.
How Does An Annuity Work?
Are The Types Of Annuities?
There are types of annuities – essentially two ways in which the individual receives the annuity payout:
What Are Tax Implications Of Annuities?
Annuities do not offer any tax benefit to policyholders. It is added to income and taxed at the marginal rate of taxation.